CONNECTIONS(tm) News

Thursday, July 24, 2008

Parks Associates and CEA® announced they will again host CONNECTIONS™ Summit at CES, January 8-9, 2009, in Las Vegas, and are currently accepting speaker submissions for the event. CONNECTIONS™ Summit features nine sessions on key digital-living topics during the first two days of 2009 International CES.

CONNECTIONS™ Summit Sessions at CES feature nine sessions held the first two days at CES. Moderated by Parks Associates analysts, these sessions provide an interactive environment for networking and discussion. Attending the sessions at the CONNECTIONS™ Summit offers the perfect start to CES – attendees receive consumer and industry data, insight from leading executives, and the opportunity to speak with Parks Associates’ analysts.

The sessions, moderated by Parks Associates analysts and featuring executive panelists, will examine growth in new markets like digital photo frames, new business models for service providers, and the ongoing changes in how consumers access content. Parks Associates' research indicates that remote, in-store, and at-home consumer IT support services will generate $1 billion in revenues annually in the next few years, a substantial market opportunity for many new and existing players.

CONNECTIONS™ Summit features commentary, insight, and debate on successful market strategies and deployment for the following areas:

Thursday, July 17, 2008

Parks Associates announced the sponsors for CONNECTIONS™ Europe Summit, taking place August 29, 2008, at the Kempinski Hotel Bristol Berlin. This Executive Summit will provide attendees with consumer research from international market research firm Parks Associates and feature interactive discussions focused on advanced television services, new media and digital content, and value-added services.

The WirelessHD Consortium will host a pre-show workshop on Thursday, August 28, to address how WirelessHD technology is advancing instant wireless access to high-quality digital content with simple controls. CONNECTIONS™ Europe will host an evening reception on August 28, where attendees and media can meet event participants.

For the most part, the ASIC route still offers the most cost effective route to market for semiconductor manufacturers, if it is handled correctly.

In fact, thanks to the trail blazing activities of Integrated Device Manufacturers (IDMs), who continue to invest in the latest technologies, the established process nodes have never been more accessible to manufacturers, particularly fabless semiconductor manufacturers and specifically for start-ups.

The majority of SOC devices shipped today are actually originated by fabless semiconductor companies, many of which could still be described as being in a start-up phase.

In this early phase, these companies have specific needs and demands that are difficult for foundries to meet. Consequently, Toshiba has developed a new, open and advanced IDM model that meets the needs of the fabless chip company, as well as being able to support OEMs with the classical ASIC (IDM) model.

It is easier to understand why this new model is necessary, if the current SOC supply chain is analysed from the perspective of the fabless semiconductor company.

In the early stages, a fabless semiconductor’s motivation for developing a SOC is to reduce production costs, but not necessarily go for the lowest possible cost level. More likely, it is to bring their product to market within a window of opportunity (innovative fast moving / growing markets) and using an appropriate technology. Crucially, their strengths will undoubtedly lie in the functionality of the device. Immediately it is clear that the client needs to work with a partner who is best placed to advise on this issue, and it doesn’t start and end with process technology. Later in maturing markets, production cost optimisation is the key for success, and this can also be offered by Toshiba via a pure foundry model.

Design hand-off

It all starts with a concept, but for any company today to approach an ASIC/SOC design with a clean sheet of paper is unfeasible; the use of 3rd Party IP is not only commonplace it has become essential. This represents potentially the most complex element of the supply chain for any company; how to co-ordinate the selection, delivery, integration and verification of multiple pieces of IP and design libraries, without being able to specify, at an early stage, the fabrication process targeted.

Without a team of dedicated specialists, the fabless semiconductor manufacturer could become embroiled in design details they are not best qualified to address. However, an IDM is perfectly placed to address these issues because it fits exactly their own internal design flow and management structure, and they are likely to already have working relationships with the IP and design library providers.

Once the design phase has been entered the manufacturer is faced with a potentially expensive and time-consuming learning curve, if the EDA tools are to be mastered to a degree where sign-off can occur. To alleviate this Toshiba accepts design hand-off at the RTL level, meaning companies can avoid investing in expensive tools and start with simple VHDL/Verilog design, allowing the customer to focus on their core competence and not the implementation, including synthesis and Design for Test (DFT). For fabless companies, handing over a netlist is often the preferred solution as it protects their IP.

To support the customer’s core competence, Toshiba also offers a host of design services, which includes CPU sub-system design, DFT and DFM (Design for Manufacturing), and the provision of mixed signal and standard digital IP, all of which can be provided by Toshiba or one of its qualified 3rd Party partners. To speed application development Toshiba offers local competence and support through its European LSI Design and Engineering Centre (ELDEC).

If the customer’s core competence includes mixed signal design, then GDS hand-off is requested. Here, Toshiba can also reduce the cost of design by offering its own analogue physical design kit (PDK), but still offering top-level and digital layout service from ELDEC.

Knowledge transfer

Because the Toshiba ASIC & Foundry service is based on its own CMOS process development – it is fully qualified and works seamlessly with the Toshiba CMOS libraries. With dedicated LSI logic production lines, Toshiba continues to manufacture devices at the um node but has recently announced its fully qualified 65nm process, with 40nm tape-outs expected in early 2009.

Toshiba’s ASIC customers inherit all this technology, as it is used to develop and manufacture its own in-house ASSPs. The experience gained by developing devices targeting highly demanding and competitive markets is also offered to customers, which is where the IDM model really benefits the fabless manufacturer.

To remain competitive in its chosen markets, Toshiba also needs to invest in leading edge packaging technologies, a further benefit to its ASIC customers and another example of how using the IDM model simplifies the entire supply chain.

Toshiba operates its own assembly and testing facilities, from low pin-count QFN/QFP to various types of BGA packages and Wafer level chip scale packaging (WLCSP). For multi-chip devices, System in Package (SIP) is also available.

With an open and advanced IDM model, Toshiba is able to simplify the supply chain for SOC development, from design hand-off, to sourcing wafers, assembly and test. A close reporting structure ensures flexibility throughout the design and manufacture process, without sacrificing performance or yield, and also enables short turn-around-times.

Access to a local sales organisation helps customers with order processing and logistical issues. Toshiba, for example, has rolling forecast systems that anticipate peak demand and recognise overstocking.

Lastly, the ASIC model offers a more attractive cashflow for customers who only pay after final product delivery rather than after every production step, when dealing with multiple organizations.

Tuesday, July 8, 2008

The Continua Health Alliance organized an information session at the annual Connections conference hosted by Parks. Three executives gave a very humble and candid overview of Continua’s mission, agenda, progress, and momentum.

Rick Cnossen, who is the Technical Working Group Chair of the Alliance, highlighted the upcoming version one of the interoperability standards and the Alliance’s membership growth momentum. Dr. Hyung Tai Kim, who is VP of Research from Ascension Health, one of the nation's largest non-profit hospital networks, explained Ascension’ mission in the healthcare transformation and motivation for the company to join the Alliance. Julie Cherry, Director of Clinical Services from Intel Digital Health Group, presented her view from both a clinician’s perspective (she is an RN) and Intel’s regarding chronic disease care and how technology can help improve healthcare delivery.

Their presentations will be available for download shortly after the Conference, so be sure to return to www.parksassociates.com for conference updates. The three speakers answered audience’s questions with a rare candidness, occasionally even with emotion. Perhaps the topic of health touches a sensitive spot in us as human beings. Key progress made by Continua in the last two years include creating several working groups to tackle regulation, technology, reimbursement, and business model aspects of the ecosystem that the Alliance tries to build.

The version one interoperability standards will include two data transport standard: USB and Bluetooth, both at the medical grade. Rick explained that Continua is also working on interface standards for personal health record (PHR), electronic health record (EHR), sensor network and wellness applications. Dr. Kim was particularly good at sharing his view from a provider’s perspective. I asked him about the outreach programs Continua is working on, particularly to the physician practices. He said that being a physician himself, he knows physicians are a tough group to connect. But the Alliance is closely watching initiatives from physician groups and will reach out to them when the timing is right—when technology is ready for physicians to test, and compensation schemes are stable and acceptable to physicians. One attendee asked about which personal health initiative—Google Health or Microsoft Health Vault--that his company should support. Dr. Kim’s suggestion: try to do both.

Continua will host a member meeting in July, and guess what, a Google Health executive will keynote the event. Harry Wang will attend that meeting and present research and findings to Continua’s members on July 9.

In a new survey by Parks Associates, roughly two-thirds of U.S. and Canadian broadband households reported regular use of a PC to play music while at home, and one-third said they use a television to listen to music. MP3 players ranked equal to TVs, with one-third of households using these platforms for music, in the new report titled Digital Media Habits II.

“iPods are sexy, but not everybody has one,” said John Barrett, Director of Research at Parks Associates. “TVs are ubiquitous and increasingly capable of delivering a range of content, especially with new features like digital music delivery and place-shifting services. This is just the tip of the iceberg for TV applications.”

In the report, Parks Associates analysts recommend that developers and service providers account for these standard platforms when designing new digital entertainment services.

Parks Associates will discuss next-generation video services at the CONNECTIONS™ EuropeSummit, taking place August 29, 2008, in Berlin, Germany. The Summit will feature panel discussions on “The Evolution of Video Devices” and “Visual Networking and TV 2.0,” among other topics. Sponsors include Cisco Systems, Enure Networks, F-Secure Corporation, MoCA™, support.com, WirelessHD and Zilog. Visit www.connectionseurope.com for more information.

Monday, July 7, 2008

WirelessHD Consortium will host a pre-show workshop on Thursday, August 28, in cooperation with CONNECTIONS™ Europe Summit. CONNECTIONS™ Europe will host an opening evening reception on August 28, where attendees and media can meet CONNECTIONS™ Europe and WirelessHD event participants.

The WirelessHD 1.0 Specification Workshop, to be hosted from 1:00 PM - 5:00 PM on August 28 at the Kempinski Hotel Bristol Berlin, will address how WirelessHD technology is advancing instant wireless access to high-quality digital content with simple controls.

WirelessHD technology is based on the 60GHz frequency band and offers the fastest available data rates for the connected digital lifestyle, up to 4Gbps. The workshop will provide a technical overview of the world's first global standard for true uncompressed, wireless high-definition audio, video, and data networking.

Consumer demand for interactivity in entertainment and control at home is driving adoption in technology products and services, according to Parks Associates analysts at CONNECTIONS. The conference focused on access services, video delivery, online content services, advertising, digital health, digital media, and home systems. Parks Associates forecasts over 400 million households worldwide will have digital television services by 2012.

ADVANCED TELEVISIONKurt Scherf, Vice President and Principal Analyst, highlighted key developments in advanced television services and discussed future areas of focus, including bandwidth issues and the “interactive experience” enabled by VoD, widgets, and advertising. Currently the lack of easy, high-quality connections between VoD services and the TV is a key inhibitor to the growth of the broadband VoD market. Parks Associates expects to see an increase in products and services aimed at connecting content to platforms in 2008 and beyond.

PORTABLE DEVICESJohn Barrett, Director, Research, highlighted recent findings from National Technology Scan 2008, a telephone survey of U.S. households. “In the past year, approximately 45 million households purchased a mobile phone, 29 million purchased a digital camera, and 27 million purchased an MP3 player,” Barrett said. “Portable devices are clearly capturing the consumer's attention right now more so than stationary devices."

BROADBANDMichael Cai, Director, Broadband and Gaming, spoke about the changes in the broadband market. He predicted the next competitive cycle will center on bundles and value-added services. “Telcos will focus on multiplay bundles and value-added services, forcing a response from cable MSOs,” Cai said. “The increased importance of customer retention will lead to new and more intense rounds of loyalty programs and other customer retention tactics.”

HOME SYSTEMSBill Ablondi, Director, Home Systems, highlighted growth in home systems, stressing their expansion into broader markets, including areas such as multiple-dwelling units, which represent new opportunities for digital systems and services. Also, remote home monitoring services offered through telco/MSO service providers will revolutionize the traditional home security business as broadband services disrupt yet another business model. Parks Associates forecasts that self-monitored households will nearly triple to more than 6 million by 2012.

PERSONAL HEALTHHarry Wang, Director, Research, discussed personal health solutions. Parks Associates predicts this space will achieve $2.5 billion in U.S. device and service revenues by 2012. “There are significant barriers to overcome, but consensus is forming that technology can help empower consumers and health professionals in achieving better care at lower costs,” Wang said. “Now the technology industry must work with the health community to extend adoption to a broader patient population and convince the health ecosystem of the value of personal health technologies.”

Saturday, July 5, 2008

Current forecast for home entertainment networking suggests continuation of multiple parallel technologies, standards and mediums, with choices based on ease of use and applications. “Let the marketplace decide,” is the rallying war cry on this competitive path toward hypothetical industry standardization. We recommend a different, more agreeable course founded upon shared interests and mutual benefit for providers, manufacturers and consumers alike.

Too many technologies are purporting to be standards, especially for home entertainment networking. Consumers want home entertainment networking solutions, not another standard. They want whole-home connectivity that includes gaming, HD video, telephone service, internet and data access. They want to purchase, with confidence, a system that is easy to install and inexpensive. They could care less about technologies or standards.

Current forecast for home entertainment networking suggests continuation of multiple parallel technologies, standards and mediums, with choices based on ease of use and applications. “Let the marketplace decide,” is the rallying war cry on this competitive path toward hypothetical industry standardization. We recommend a different, more agreeable course founded upon shared interests and mutual benefit for providers, manufacturers and consumers alike.

Too many technologies are purporting to be standards, especially for home entertainment networking. Consumers want home entertainment networking solutions, not another standard. They want whole-home connectivity that includes gaming, HD video, telephone service, internet and data access. They want to purchase, with confidence, a system that is easy to install and inexpensive. They could care less about technologies or standards.

Is it any wonder the end consumer is confused? We, as an industry, offer too many standards and not enough solutions. It is solutions that are of interest to consumers and it is at that level that we should be competing. Competition does not need to create confusion to thrive, but confusion is evidence of competing ideas. Too many standards foster misunderstanding and redundancy. They can serve to bind customers to their point of entry generating discontent. If we are not careful, consumers will wash their hands of the whole affair.

A standard is more than a specification. Technical merits are cornerstone of the evaluation process, as are organizational effectiveness and economic benefits. Market size, immediate and downstream economic value and management by industry leaders should also be considered when evaluating and adopting standards.

To say that the home entertainment network is and will be a blend of technologies, standards and mediums has become cliché. This thinking does not take into account the problem of moving high definition video from room to room or screen to screen in real time. In addition to considerations such as overall performance, quality of service, operating frequency and availability, economic benefits, ability to function in multiple industry segments and environments, we must not lose sight of the fact that the solution must ensure real-time HD video distribution within homes.

We believe that no one standard will dominate the home entertainment networking marketplace. However, the ones that stick around will not interfere with other mediums, technologies or devices in use. They must appeal to multiple geographies and industry segments. These standards will also provide value throughout the entire chain. The dominant home entertainment networking standards will also utilize the ideal medium designed for video in the first place--coax.

There are too many standard and not enough solutions. While service providers try them all, endless trials further delay deployments and the consumer grows ever more confused.

A standard provides a framework within which innovation thrives. When an industry accepts a standard it is an indication of maturity and confidence. It is beneficial to the industry and their customers to begin finalizing these home entertainment networking standards.

This article was published for the 2008 CONNECTIONS™ Conference Industry Insights, the official publication of CONNECTIONS™.

About

CONNECTIONS™: The Digital Living Conference and Showcase, produced by International research firm Parks Associates is the largest executive conference and showcase dedicated to advanced digital lifestyle solutions for residential and mobile environments. CONNECTIONS™ Industry Insights is the official online publication for CONNECTIONS™. This publication tackles the issues key to the digital living markets in order to make sense of the industry segments and their seemingly disparate elements.

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